The state of affairs in the mining industry also indicates the expectation of further growth in the price of bitcoin. For example, Bitcoin mining company Riot Blockchain reports that it produced 187 bitcoins in March, which is 80% more than in March last year.
Riot Blockchain is also actively investing in increasing its own fleet of mining equipment: the company intends to purchase 42 thousand S19j Antminers from Bitmain for a total of about $ 138.5 million.
Jeff Ross, founder of Vailshire Capital Management, after analyzing the macroeconomic factors of the bitcoin market, as well as researching technical analysis indicators, made a bold forecast for bitcoin:
«It is likely that Bitcoin will go to a new all-time high within the next one to two weeks with a target of $ 100,000.»
#Bitcoin technical update: The two-month consolidation wedge continues with stable weekend price action.
Macro view: Wildly bullish.
On-chain analytics: Wildly bullish.Opinion: Break-out to new all-time highs likely within 1-2 weeks. Then blue skies until $ 100k milestone.
– Dr. Jeff Ross (@VailshireCap) April 12, 2021
From the point of view of technical analysis, bitcoin has been in the consolidation stage for a fairly long time – about two months. Bloomberg analyst Mike McGlone draws attention to the fact that in the situation with Bitcoin:
«Demand is growing, which allows us to anticipate further increases in asset prices and a new price level as the cryptocurrency industry matures.»
Technical Outlook: Still in Price-Discovery Mode, #Bitcoin Plateau Appears Distant –
Bitcoin supply is declining and demand is rising, leading us to expect continued price appreciation and the establishment of a higher plateau as the crypto matures.– Mike McGlone (@ mikemcglone11) April 12, 2021
Recall that a little earlier, the Commissioner of the American Securities and Exchange Commission Hester Pierce also announced that the cryptocurrency market is becoming more mature, including due to the fact that an increasing number of institutional investors are entering the field of digital assets.
Metrics talk about the continuation of the bullish rally in BTC
There are some metrics that the cryptocurrency community is watching and which they believe could signal an imminent rise or fall in BTC. Let’s take a look at some of them.
The number of bitcoins that are on crypto exchanges peaked in March 2020 and has been steadily decreasing since then.
The decline in BTC stocks on exchanges is perceived as a bullish sign, because users buy cryptocurrency and withdraw it to personal addresses for long-term holding. If the owners of bitcoin wanted to sell the asset, they would, on the contrary, bring it to the exchanges.
At the moment, about 2.2 million BTC are stored on exchanges, which is only 12% of the circulating supply of cryptocurrency.
Another sign of the rapid growth of BTC is the decrease in sales from miners.
Starting from the end of December and until about the end of March, miners mainly sold the mined BTC, and at the beginning of April the situation changed – they accumulate the first cryptocurrency. This signal indicates that miners expect further growth in bitcoin. Moreover, with their sales, they put pressure on the price.
Also, the crypto community is closely monitoring the withdrawal of large amounts of BTC from the Coinbase exchange. The point is that Coinbase is considered an exchange for institutional investors. Its services are used by many companies, including Tesla, to buy cryptocurrencies. Over the past several months, there have been occasional large withdrawals of BTC from Coinbase addresses.
These findings suggest that major players are buying bitcoins and withdrawing them for further long-term retention.
